MYTH: REITs have not performed as well as other investments in recent decades.

FACT: Investors may be surprised to learn that over the last 30 years, REITs have outperformed the Nasdaq with one-third to one-half the volatility, as well as outperformed the S&P 500, also with less volatility. This evidence of reliable performance over the course of the last three decades underscores the value of including real estate stocks in a diversified portfolio.

Because most REITs also have a small to medium equity market capitalization, their returns should be comparable to other small to mid-sized companies.

There is a relatively low correlation between REIT returns and the returns of other market sectors. As Michael Grupe, NAREIT's senior vice president of investor outreach, further points out, "We often talk about REIT stocks offering both bond and stock attributes. Their return characteristics tend to fall between those of other stocks and bonds. These characteristics are what lead to the stocks' important diversification benefits."

Comparative Total Return Investment Performance (Data in percent through June 28, 2002)
Compound Annual Returns	Period	NAREIT Equity	NASDAQ¹ Composite	Standard & Poor's 500
	Beginning 1972	12.79	8.75	11.55
	20-Year	13.84	11.33	14.90
	15-Year	10.09	8.61	10.87
	10-Year	12.70	10.02	11.43
	5-Year	7.94	0.32	3.66
	3-Year	14.21	-18.30	-9.18
	1-Year	16.22	-32.19	-17.98
Annualized Volatility of Returns	Beginning 1972	13.54	22.57	15.56
	20-Year	11.94	23.98	15.43
	15-Year	12.41	25.70	15.52
	10-Year	11.95	27.57	14.38
	5-Year	13.06	36.23	17.87
	3-Year	11.84	40.82	17.04
	1-Year	11.29	32.83	15.77
	¹Price only returns Source: NAREIT®, Ibbotson Associates, Frank Russell Company.